Westpac Financial Performance Update
Challenging conditions in dairy sector
Agribusiness portfolio total committed exposure
by sector (%)
1
Commentary
WNZL is underweight the dairy sector
Focus on quality operators with efficient, lower cost models
Within the main regions farms can operate on a 'low cost
farming model' due to climate / soil types
➤ Majority of dairy security assets held in prime geographic
farming areas
New Zealand's cost structure at the lower end of global
competitors
Global dairy prices remain below long run average with
challenging conditions for the dairy sector, reflected in increase
in stressed exposures
7
17
■Dairy products
■Grain, sheep and beef cattle
■Horticulture and fruit growing
Other livestock farming
71
■ Other
Agribusiness portfolio
12.5
Dairy EAD (NZ$m)¹
Peer 1
6.4
9.0
Peer 2
Peer 3
Mar-15
Sep-15
Mar-16
Total committed exposure (TCE)
$7.3b
$7.8b
$8.1b
Agriculture as a % of TCE
7.7%
7.9%
7.9%
5.9
% of portfolio graded as 'stressed'
2.88%
3.92%
7.81%
Westpac
% of portfolio in impaired
0.33% 0.34%
0.32%
1 Source Company Reports. Peer 1, Peer 3 and Westpac at 31 March 2016. Peer 2 represents total lending assets and is an estimate at June 2015 based on company reports and presentations.View entire presentation